Russia and Myanmar plan to trade using Kyat and Ruble

Countries are increasingly moving towards national currencies in trade, aiming to lessen dependence on the U.S. dollar and Western financial systems.

Russia and Myanmar are currently engaged in discussions to establish a payment system that would allow them to conduct trade using their respective currencies, the kyat and the ruble.

This initiative is part of a broader trend among nations seeking greater economic independence.

In an interview with Tass, Myanmar’s Minister for Investment and Foreign Economic Relations, Kan Zaw, confirmed that negotiations are underway for a kyat-ruble payment system designed to facilitate bilateral trade.

However, he noted that details of these talks remain confidential.

“We have been negotiating the kyat-ruble payment system to facilitate the bilateral trade. However, the central banks of the two countries have been keeping the current series of discussions at a very low profile,” Zaw stated.

Despite facing challenges such as high transportation costs for air freight, there are significant opportunities for Myanmar to export products like rice, avocado, coffee, and fisheries to Russia.

“Bilateral trade between the two countries will be increased through constructive dialogues at the national level by exchanging views on the potential of being able to connect with each other based on the needs of the market,” Zaw said, emphasising the need for cooperation in addressing logistical barriers.

This development aligns with a global movement towards de-dollarisation, which has gained momentum among BRICS nations advocating for local currency trade.

Russia has intensified its efforts to reduce dollar reliance in response to Western sanctions and is actively pursuing partnerships across Asia, Africa, and Latin America.

By fostering local currency agreements, Russia aims to diversify its economic relationships and lessen the influence of Western-led financial systems.